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Home My WebLink About2015 02 10 Consent 301 Unapproved Minutes from the November 12, 2014 Special MeetingThe Special Meeting of Wednesday, November 12, 2014 of the Board of Trustees was called to Order by Chairperson Watkins at 6:08 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Barbara Watkins, present Vice - Chairperson Frank Mundo, present Board Member Brian Fricke, absent Board Member Geoff Kendrick. , present Board Member Robin Paris, present Assistant to the City Clerk Sean Beaudet, present A moment of silence was followed by the Pledge of Allegiance. Related to Agenda Changes, Mr. Shawn Boyle, Director, Finance and Administrative Services Department, requested that Consent Agenda Item "300" be moved up and discussed, as the Actuary was in attendance and could give more information on the Fiscal Year 2013 Actuarial Valuation. No objections were noted. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA INFORMATIONAL 200. Not Used CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING- NOVEMBER 12, 2014 PAGE 2 OF 6 ❖❖ AGENDA NOTE: THE FOLLOWING CONSENT AGENDA ITEM WAS DISCUSSED FIRST, FOLLOWED BY THE REMAINDER OF THE AGENDA, AS DOCUMENTED. ❖❖ CONSENT AGENDA CONSENT 300. Finance And Administrative Services Department Requesting The Board Of Trustees Receive And Accept The 2013 Actuarial Valuation From Gabriel Roeder Smith & Company. Mr. Larry Wilson, A.S.A., Senior Consultant and Actuary, Gabriel, Roeder & Smith Company (GRS), One East Broward Boulevard, Suite 505, Fort Lauderdale, Florida: introduced himself and gave a brief overview of the firm. Mr. Wilson noted that the reasons for the Actuarial Valuation were for determining contribution requirements, reporting requirements to the beneficiaries, and to meet State reporting requirements. Next, Mr. Wilson highlighted many of the figures in the Report entitled, "Defined Benefit Plan— Actuarial Valuation as of October 1, 2013 ". Mr. Wilson then covered the intricacies of the new accounting standards the State of Florida would be requiring of Actuaries in assessing Municipal Pension Plans. "I WOULD LIKE TO MAKE A MOTION TO ACCEPT THE 2013 ACTUARIAL VALUATION REPORT, AS PRESENTED." MOTION BY CHAIRPERSON WATKINS. SECONDED BY VICE - CHAIRPERSON MUNDO. DISCUSSION. Chairperson Watkins opened "Public Input ". No one addressed the Board of Trustees. Chairperson Watkins closed "Public Input ". VOTE: CHAIRPERSON WATKINS: AYE VICE - CHAIRPERSON MUNDO: AYE BOARD MEMBER KENDRICK: AYE BOARD MEMBER PARIS: AYE MOTION CARRIED. Mr. Wilson further explained the new accounting standards required by the State of Florida and much discussion ensued. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL, MEETING —NOVEMBER 12, 2014 PAGE 3 OF 6 f 400. REPORTS No Reports were given. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used REGULAR AGENDA REGULAR 600. Finance And Administration Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The Fourth Quarter Investment Return Report, And To Enter Into Discussion. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: briefly spoke on his firm's role. Tape I /Side B Next, Mr. West covered in great detail many of the figures in the Investment Return Report and added that no performance or Manager issues arose during the quarter. Brief discussion on receipts and disbursements. Concluding the presentation, Mr. West said, "From a management standpoint, we have no actions, no recommendations other than the potential strategy addition that we will talk about tonight." REGULAR 601. Finance And Administration Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group A Short - Duration Investment Analysis and Recommendation, And To Enter Into Discussion. Mr. West presented the item and referenced funds that were set aside through a previous alternative investment. Mr. West noted a Short- Duration Investment option was, "A low cost investment option that could be used as a temporary parking place for the money that would be ultimately going to the Crescent (Direct Lending) Fund — that two million dollars ($2,000,000.00) going to the Crescent (Direct Lending) capital call. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - NOVEMBER 12, 2014 PAGE 4 OF 6 The purpose behind it is the desire to — put the money to work in a fixed income investment that is less interest rate sensitive than the current investment grade bond portfolio, number one (1). Number two (2), it has to be liquid. Number three (3), it has to be low cost." Further comments. Figures from the "Short- Duration Fixed Income" Report were covered. Next, Mr. West stated, "Our recommendation is to consider using the Vanguard Short - Term Corporate Bond Index. It is giving us the highest potential yield with a very fair level of liquidity and a duration sensitivity which is less than the current bond portfolio." Much discussion. In assessing extra cash that was available in the Pension, Mr. West offered as an alternative option, "We can go forward with the Templeton Investment and we can also notify American Realty or Intercontinental, we would like to commit additional capital to your fund. Put us in the queue. When we get the capital call, we can liquidate hopefully at a gain. We can liquidate the Templeton Global Bond Fund." Further discussion on the actual duration risk of Templeton Global Bond Fund and the investment returns of American Realty. Vice - Chairperson Frank Mundo summed up the discussion and stated, "I like your choice on the short-term fund. I like your suggestion that we put our remaining funds waiting to ramp up into the bank loan fund and that we take the balance and put it into Templeton Global (Bond Fund), while we alert American Realty to the fact that we are interested in doing something there. Is that a summary — we all agree on that ?" Chairperson Watkins stated, "Yes." Other Board of Trustees Members nodded in agreement. "I AM GOING TO MAKE A MOTION THAT WE ADOPT THE MOVES THAT I JUST SUGGESTED." MOTION BY VICE - CHAIRPERSON MUNDO. SECONDED BY BOARD MEMBER PARIS. DISCUSSION. VOTE: BOARD MEMBER KENDRICK: AYE BOARD MEMBER PARIS: AYE CHAIRPERSON WATKINS: AYE VICE - CHAIRPERSON MUNDO: AYE MOTION CARRIED. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES 0=1 SPECIAL MEETING — NOVEMBER 12, 2014 PAGE 5 OF 6 Mr. Boyle said, "We can memorialize that in writing and then we can distribute it to everybody to make sure we captured it correctly." Then Mr. West added, "Yes. Procedurally, I'll go ahead and put a letter of direction together for the Custodian, which will go through your office (Mr. Boyle) for authorization. So, we will make sure everybody gets copied on that." Tape 2 /Side A Much discussion ensued on excess cash reserves, policy targets for the investments, funds already pledged to the alternative investment, and giving some flexibility to the Consultant in regards to meeting the policy targets of the various funds. Mr. West requested the "Flexibility to move assets per policy targets if needed." Mr. Boyle added, "So, we would need a separate Motion to add that flexibility to work within the targets." Discussion. "MOTION TO ACCEPT DAVID'S (WEST) RECOMMENDATIONS." MOTION BY VICE - CHAIRPERSON MUNDO. SECONDED BY CHAIRPERSON WATKINS. DISCUSSION. Chairperson Watkins opened "Public Input ". No one addressed the Board of Trustees. Chairperson Watkins closed "Public Input ". VOTE: BOARD MEMBER KENDRICK: AYE BOARD MEMBER PARIS: AYE VICE - CHAIRPERSON MUNDO: AYE CHAIRPERSON WATKINS: AYE MOTION CARRIED. PUBLIC INPUT Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". NOTE: These Minutes were Approved at the , 2015 Board of Trustees Regular Meeting.